Respond to each question below after reviewing the financial statements for Boeing and Airbus:

1. When comparing Airbus and Boeing together, what type of ratio comparison is this?
2. What do solvency ratios aim to measure?
3. What do liquidity ratios aim to measure?
4. State the formula for the debt-to-assets ratio. What are the debt-to-assets ratios for Boeing and Airbus in 2017? Based on your debt-to-assets ratios, which company is more solvent in 2017, Boeing or Airbus? [Put your answer as a percentage, rounded to two decimal places.]
5. State the formula for return on assets. What are the returns on assets for Boeing and Airbus in 2017? Based on your returns on assets, which company is more profitable for 2017, Boeing or Airbus? [Put your answer as a percentage, rounded to two decimal places.]
6. State the formula for the current ratio. What are the current ratios for Boeing and Airbus in 2017? Based on your current ratios, which company is more liquid in 2017, Boeing or Airbus? [Round your answer to two decimal places.]
7. Airbus uses euros as its functional currency while Boeing uses U.S. dollars. Can these ratio comparisons be made? Why or why not?

8. Airbus prepares financial statements using International Financial Reporting Standards (IFRS) and uses revaluation accounting for major classes of its assets. In FY 2017, Airbus had a revaluation increase of 7,773M in the value of its leased assets. Re-calculate the return on assets on a comparable basis to Boeing. Assume the revaluation was zero in FY 2016. Hint: The revaluation increase is not included in net income.

The Boeing Company and Subsidiaries Consolidated Statements of Financial Position 2017 2016 $8.813 SA 801 88 42 10,516 309 44 144 65,161 2.740 12,672 43 199 624 3.773 12.07 5324 2540 332 1.317 5.559 2.573 341 1.260 2.027 $92.333 $89.997 Dollars in millions except per share data December 31, Assets Cash and cash equivalents Short-term and other investments Accounts receivable.net Current portion of customer financing.net Inventories, net of advances and progress bilings Total current assets Customer financing.net Property, plant and equipment, net Goodwill Acquired intangible assets, net Deferred income taxes Investments Other assets, net of accumulated amortization of $482 and 8497 Total assets Liabilities and equity Accounts payable Accrued abilities Advances and billings in excess of related costs Short-term debt and current portion of long-term debt Total current liabilities Deferred income taxes Accrued retiree health care Accrued pension plan lability, net Other long-term liabilities Long-term debt Shareholders equity Common stock, par value $5.00 - 1.200.000.000 shares authorized: 1.012.261,159 Share issued Additional paid in capital Treasury stock, at cost Retained earnings Accumulated other comprehensive loss Total shareholders equity Noncontrolling interests Total equity $12.202 15.292 27.440 1,335 $6,269 1.839 5.545 16.471 2015 9.782 $11.190 14 691 23 889 384 50.134 1338 5.916 19.943 2221 9.568 5.061 6,804 (43,454) 45.320 (13.376 5,061 4762 (36,097) 40714 (13623) The Boeing Company and Subsidiaries Consolidated Statements of Operations (Dollars in millions, except per share data) Years ended December 31, Sales of products Sales of services Total revenues 2017 $83,204 10,188 93,392 2016 $84,399 10,172 94,571 2015 $85,255 10.859 96,114 (72,713) (8.018) (59) (80.790) 13,781 303 (3.616) (4.627) (73.446) (8.578) (64) (82,088) 14,026 274 (3,525) (3,331) 5,834 Cost of products (68,365) Cost of services (7,631) Boeing Capital interest expense (70) Total costs and expenses (76,066) 17,326 Income from operating investments, net 204 General and administrative expense (4,094) Research and development expense, net (3,179) Gain/loss) on dispositions, net Earnings from operations 10,278 Other income/(loss), net 129 Interest and debt expense (360) Earnings before income taxes 10,047 Income tax expense (1,850) Net earnings $8,197 Basic earnings per share $13.60 Diluted earnings per share $13.43 See Notes to the Consolidated Financial Statements on pages 51 - 105. 40 (306) 5.5687 (673) $4,895 7.443 (13) (275) .155 (1.979) $5,176 $7.70 $7.52 $7.61 $744 Airbus SE - IFRS Consolidated Statements of Financial Position at 31 December 2017 and 2016 Property a nd for under the guy m ed Ome n dorong term financial No contornan Nanter Naci Current T Airbus SE - IFRS Consolidated Income Statements for the years ended 31 December 2017 and 2016 2017 2016 Note 10 6,767 66.581 151317) (50160 7,607 1872) 1997) (1,7261 .970 Q.10 981 Revenues Cost of sales Gross margin Selling expenses Administrative expenses Research and development expenses Other income Other expenses Share of profit from investments accounted for under the equity method Other income from investments Profit before finance costs and income taxes Interest income Interest expense Other financial result Total financial result 2.600 054 231 333 3.421 2,258 247 517) 1592 1692) 1967) (291) 1,000 11. 2,877 Profit for the period Attributable to Equity owners of the parentNet income Non-controlling interests Earnings per share Basic Ded